Certified Supply Chain Professional (CSCP) Practice Exam

What is the primary function of a Value Added Network (VAN)?

1. Provides delivery services for common carriers

2. Offers additional services beyond those provided by common carriers

3. Facilitates social networking among businesses

4. Handles logistics for supply chain management

The correct answer is: Offers additional services beyond those provided by common carriers

The primary function of a Value Added Network (VAN) is to offer additional services beyond those provided by common carriers. VANs serve as intermediaries in electronic data interchange (EDI) by facilitating the exchange of business documents between trading partners. They not only transport data but also provide a variety of services that enhance the efficiency and security of communication, such as data translation, encryption, and the tracking of documents. By offering these additional features, VANs help to streamline supply chain processes and improve the overall quality of data exchanged. This makes them pivotal in managing complex business transactions and ensuring that partners can communicate effectively. In contrast, while logistics and delivery services relate to the physical movement of goods, VANs specifically focus on the electronic transfer of information that supports those logistics processes. Consequently, they serve a unique role within the supply chain by improving data handling and fostering greater connectivity between organizations.